Mueller Industries Inc (MLI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 820,872 | 846,453 | 876,841 | 602,817 | 228,436 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,773,160 | 2,337,440 | 1,790,910 | 1,222,120 | 776,745 |
| Return on total capital | 29.60% | 36.21% | 48.96% | 49.33% | 29.41% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $820,872K ÷ ($—K + $2,773,160K)
= 29.60%
Mueller Industries Inc's return on total capital has shown a fluctuating trend over the past five years. The ratio increased from 29.41% on December 31, 2020, to 49.33% on December 31, 2021, indicating a significant improvement in the company's ability to generate returns on its total capital employed. However, there was a slight decrease in the ratio to 48.96% on December 31, 2022. Subsequently, the return on total capital further declined to 36.21% on December 31, 2023, showing a decrease in the efficiency of capital utilization. The ratio decreased again to 29.60% on December 31, 2024, reflecting a further drop in the returns generated by the total capital invested in the company. Overall, Mueller Industries Inc's return on total capital demonstrates variability in performance over the years, suggesting the need for continuous monitoring and optimization of capital allocation strategies to enhance profitability.
Peer comparison
Dec 31, 2024